US Lawmakers Miss Crucial GENIUS Act Deadline, What’s Next For Stablecoin Issuers?

Federal regulators have failed to meet a key deadline under the GENIUS Act. This has left stablecoin issuers without final compliance rules despite the law’s one-year implementation schedule.

U.S. Policymakers Missed The July 18 GENIUS Act Deadline

For context, on July 18, 2025 President Donald Trump signed the GENIUS Act into law. The law mandated federal agencies to finalize regulations within a year. That time period ended on July 18, 2026, but none of the regulators have released a final rule.

The Treasury Department, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve and the National Credit Union Administration (NCUA) have only issued proposed regulations.

There are several proposals still in the public review process. Some comment periods are extended beyond the statutory comment period. Which means agencies are not legally able to nail down those rules until the consultation process is complete.

Failure to comply with the deadline does not put the law on hold. The GENIUS Act will still take effect on January 18, 2027. Although many operating requirements are not complete, the issuers of stablecoins are required to comply by then.

The proposals encompass the aspects of reserve assets, liquidity, custody, reporting, anti-money laundering, redemption rules, and foreign issuer registration. It’s possible that final details will change after regulators review industry feedback.

What Are The Other Associated Risks?

The delay has also raised concerns about the rules for reserves in stablecoins. BlackRock is asking the OCC to drop a proposed limit on tokenized reserve assets of 20%. The asset manager also asked to be assured that exchange-traded funds issued by the Treasury will be eligible to serve as reserves.

Another one is the case of state regulated issuers which has not been resolved yet. The law permits issuers with outstanding stablecoins under $10 billion to continue to be regulated by the state if the regulatory structure is substantially similar to that outlined under federal law. Treasury has not finalized that certification process.

The narrow implementation window could lead companies to make preparations based on proposed regulations. Compliance costs for new stablecoins might be greater if the final requirements differ from what is currently proposed.

In the meantime, Congress could also expand its oversight of the rulemaking process as agencies continue on the path to finalizing the rest of the regulations by the January 2027 effective date.

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